Adequacy of Federal Agency Studies Into National Impact of a New York Default (part 2): Hearings Before a Subcommittee of ..., 94-1, October 8 and November 7, 19751975 - 410 pages |
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23 Wall Street agencies amount approximately Authority balance bankruptcy basis points Board borrowing costs capital cash central cities Chairman Chase Manhattan Plaza Citibank City default Committee Consumer and Monetary Corporation creditors crisis cutbacks debt outstanding debt service deficit deposits economic effect employees estimated expenditures facing New York FDIC Federal Reserve FEDERAL RESERVE SYSTEM financial emergency fiscal Fort Lee funds guarantee Honorable Benjamin impact income increase interest costs interest rates investment investors issuers issues July June 30 legislation loan long-term major maturity million Municipal Assistance Corporation municipal bond Municipal Obligations municipal securities municipal unit National banks October Office operating Outlays percent plan of composition portfolio problems projects purchase reduced requested responsibility revenues risk premium Rosenthal short-term debt State's Table tax-exempt Treasury Trust underwriting unemployment Urban Development Washington yields York City Obligations York City's York Obligations York's
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Page 159 - BEFORE THE SUBCOMMITTEE ON COMMERCE, CONSUMER, AND MONETARY AFFAIRS OF THE HOUSE COMMITTEE ON GOVERNMENT OPERATIONS ON FEDERAL ACTIONS IN DEALING WITH CONTAMINATED IMPORTED WINES Mr.
Page 326 - Chairman Subcommittee on Commerce, Consumer, and Monetary Affairs Committee on Government Operations House of Representatives Washington, DC 20515 Dear Mr.
Page 137 - ... today than it was one or two years ago. Any discussion of the factors that affect the psychological attitudes of Investors must be speculative. It is possible that investor confidence was eroded by the public debate and confrontation politics that took place between the mayor, the city controller, and the governor over the city's fiscal year 1976 budget. It is also probable that the temporary default of the New York State's Urban Development Corporation and the memories of the Penn Central, Lockheed,...
Page 144 - York far outdistances most other local governments include the city university system, the municipal hospital system, the low- and middle-income housing programs, and the extensive public transportation network. For many years there seemed little doubt that the city's wealth was sufficient to support its chosen level of services. However, in recent years it has proved difficult politically to reduce services in line with the city's declining relative fiscal ability to afford them or to raise taxes...
Page 164 - ... problems is to relieve the city of some major portions of its current fiscal responsibility. As has been mentioned previously. New York City's situation would be aided immensely if the state or the federal government assumed the burden now borne by the city for welfare and related services to the poor.
Page 137 - ... has grown, the recession probably has diminished the desire and ability of banks, corporations, and individuals to buy tax-exempt bonds. This has clearly been the case with commercial banks; during the first quarter of 1975 they dropped out of the municipal bond market almost entirely (see Table 2). With respect to individuals, it has been suggested that Interest rates on municipal offerings have to be raised significantly to entice new buyers into the market. Such buyers must be drawn primarily...
Page 135 - City needs to borrow in fiscal year 1976 is to "roll over" or refund $2.6 billion in outstanding shortterm notes and to finance this year's $726 million projected current account deficit. The $2.6 billion represents the accumulation of the past decade's operating deficits which have been financed each year primarily by issuing more revenue and tax anticipation notes than could be covered through actual revenue collections. The existence of this large short-term debt and the magnitude of the current...
Page 130 - TABLE 2 — Annual Net Changes in Holdings of Municipal Securities by Major Holder Groups (1970-1975) (Amounts are par values in billions of dollars) Source: Unpublished flow of funds data from the Board of Governors of the Federal Reserve System (Processed: August 19, 1975) * Annual rate. ** This includes corporate business, state and local general funds, mutual savings banks, insurance companies...
Page 273 - June 1975, unemployment rate increase probably underestimates IO/ the impact of the recession on New York's economy,— it is reasonable to assume that the New York economy has been more seriously affected by the recession than the economies of most other large central cities. However, these large increases in the unemployment rate rate are partially offset by the average vulnerability to recession of New York City's tax base. (Table IV). Approximately 32 percent of the city's tax receipts are derived...
Page 133 - ... ruling, which states that, despite the provisions of the Financial Emergency Act, they cannot be required by legislation to purchase MAC bonds. Finally, the state, which has agreed to loan the city $750 million, has encountered increasing difficulty in borrowing. Although these notes were backed by the "full faith and credit" of the state, the state was forced to pay 8.7 percent on the first notes Issued to aid the city. Next, Standard and Poor's, which rates the risk associated with various...